Enterprise Zones

Manufactures and other business willing to invest in facilities and create jobs in economically distressed ares have a new incentive to do so. Enterprise Zone legislation was passed by the Iowa legislature and signed by Governor Branstad in March 1997.

Employers locating in enterprise zones receive the
following benefits:

1. Property tax exemptions on all or part of the costs of land
   and buildings for a period not to exceed 10 years.
2. An investment tax credit of up to 10% against corporate
   income taxes for machinery and equipment, buildings and improvements.
3. Refunds of sales, services, or use taxes paid to contractors or subcontractors during construction.
4. A 13% research and development activities tax credit.
5. Double the income tax withholding credit for community
   college job training programs.
   
   

Criteria for Eligibility

• Create at least 10 full-time positions
  (and maintain for at least 10 years).
• Pay 80% of employee health and dental insurance.
• Pay 90% of average regional wage
  (for 2003 - $10.53 in Black Hawk County).
• Make a capital investment of at least $500,000.
• Not be a retail establishment

NOTE: Eligible businesses cannot close or reduce operations in
another part of Iowa and relocate the same operations to
an enterprise zone to get incentives and benefits.
Businesses also must repay all or part of the incentives
if they don't live up to the terms of enterprise zone agreements.